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With the cryptocurrency frenzy, it’s been proven that it is simply possible to print money almost out of thin air.
Unlike many cryptocurrencies which seem to be complete scams, Ripple, for instance, is a real company…
Ripple’s founders, management, Board and investors are experienced Silicon Valley executives and blue chip Sand Hill Road and Silicon Alley Venture Capitalists.
But are they worth $11.6 billion?
That’s the imputed value of the 20% of Ripple cryptocurrency (XRP) that the company will hold (out of a total of 100,000,000,000 XRP today worth $58,389,188,679 in USD “XRP Market Cap”) in perpetuity.
And Ripple has gained about $6 billion in market cap in a week…
Why? For a couple of reasons…
- Because it has a real business (or businesses) and legitimate investors who have bet on it succeeding. A professional bet isn’t a guarantee, of course… but the folks at Andreessen Horowitz are not dummies.
- Because, for under $1.50 per XRP, it’s the equivalent of a penny stock. Even if you can’t *yet* buy XRP on Coinbase, you can still buy a lot of XRP in pure volume terms.
Anyway, it’s clear that the cryptocurrency game is one that can make (almost) any business with a story and an ICO a boatload of cash.
And that’s why the cryptocurrency/blockchain party will soon be invaded by a monster or monsters…
What will probably happen, with Bitcoin, XRP, Bitcoin Cash, Litecoin, etc. is that a technology giant, one of the “FAANG Brothers”, or Stripe, which will end up as the “S” on the end making it “FAANGS”, will create Amazon Coin, or Facebook Cash, or Apple Coin, or Stripe Cash, etc… But they will launch a cryptocurrency and execute it better than the others. They will come up with ways for consumers to actually use it, and bet on it.
It has to happen, simply because there is so much money to be made out of thin air.